Equity Residential ('EQR'), formed in March'1993, is a fully integrated real
estate company engaged in the acquisition, development, ownership, management
and operation of multifamily properties.'EQR has elected to be taxed as a real
estate investment trust ('REIT').
The Company is one of the largest publicly traded REIT's and is the largest
publicly traded REIT owner of multifamily properties (based on the aggregate
market value of its outstanding Common Shares, the number of apartment units
wholly owned and total revenues earned).'The Company's corporate headquarters
are located in Chicago, Illinois and the Company also leases (under operating
leases) approximately thirty-five divisional, regional and area property management
offices throughout the United States.
The Company seeks to maximize both current income and long-term growth in income,
thereby increasing:
''the value of the properties;
''distributions on a per Common Share basis; and
''shareholders' value.
The Company's strategies for accomplishing these objectives are:
''maintaining and increasing property occupancy while increasing rental rates;
''controlling expenses, providing regular preventive maintenance, making periodic
renovations and enhancing amenities;
''maintaining a ratio of consolidated debt-to-total market capitalization of
less than 50%;
''strategically acquiring and disposing of properties, with an emphasis on
acquiring attractive properties in high barrier to entry markets and on selling
properties in low barrier to entry markets;
''purchasing newly developed, as well as co-investing in the development of,
multifamily communities;
''entering into joint ventures related to the ownership of established properties;
and
''strategically investing in various businesses that will enhance services
for the properties.
Competition
All of the properties are located in developed areas that include other multifamily
properties.'The number of competitive multifamily properties in a particular
area could have a material effect on the Company's ability to lease units at
the properties or at any newly acquired properties and on the rents charged.'
The Company may be competing with other entities that have greater resources
than the Company and whose managers have more experience than the Company's
managers.'In addition, other forms of rental properties and single-family housing
provide housing alternatives to potential residents of multifamily properties.'